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Adani Enterprises to raise up to Rs 20,000 crore via FPO – Economic Times

To fuel billionaire Gautam Adani’s ambitious expansion plan, Adani Enterprises on Friday approved a Rs 20,000 crore further public offering (FPO) of equity shares of the company.

At a board meeting of the company to consider fundraising exercise on Friday at Ahmedabad, it was decided to raise funds via FPO through a fresh issue of equity shares by the company aggregating up to Rs 20,000 crore.

Adani’s flagship company will seek approval of shareholders for the FPO by way of postal ballot process.

The FPO exercise comes after a meteoric rise of 1,826% in the stock price of

in the last three years. The promoter holding in the company stood at 72.63% at the end of the September quarter.

Among public investors, FIIs own 15.59% of the company, while the public and mutual fund shareholding is only 6.46% and 1.27%, data showed.

The capital raise will boost the conglomerate’s aggressive growth across business verticals, both organically and via acquisitions.

The conglomerate has laid out a mega investment plan of up to $70 billion in the next 10 years to build and acquire renewable assets. About a fifth of the proposed outlay would be financed through internal accruals while the rest could be through a combination of different routes including foreign direct investments, loans and bonds.

Recently, Adani contested a Fitch Group firm, CreditSights, that called the group “deeply over-leveraged,” pegging the conglomerate’s total debt at $28.80 billion. Adani challenged the figure and, subsequently, the ratings and research company softened the tone of its observations but stuck to its main conclusion that billionaire Gautam Adani’s empire has too much debt.

The FPO is likely to increase the public float of Adani Enterprises as more numbers of shares will be available for trading on exchanges. The stock, which entered the headline index Nifty50 on September 30 this year, was trading nearly 1% lower at Rs 3887.30 after the announcement of the FPO.